Nvidia Set to Hit Record $5 Trillion Valuation Amid AI Boom

Semiconductor heavyweight Nvidia is on the verge of achieving a $5 trillion market valuation, driven by surging demand for artificial intelligence (AI) infrastructure and dominant performance in generative computing.

Shares of Nvidia surged over 8% in early trading, pushing its market capitalization closer than ever to the storied quintillion-dollar mark. Analysts say breakout gains are linked to the company’s role as a leading supplier of AI training chips and data center hardware.

“Nvidia hitting a $5 trillion market cap is more than a milestone; it’s a statement, as Nvidia has gone from chip maker to industry creator,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in the company.

“The market continues to underestimate the scale of the opportunity, and Nvidia remains one of the best ways to play the AI theme.”

After a string of recent announcements solidified its dominance in the AI race, shares of the Santa Clara, California-based company ended Wednesday’s session up 3% at $207.04, giving it a stock market value of $5.03 trillion.

Huang announced $500 billion in AI chip orders on Tuesday and said he plans to build seven supercomputers for the U.S. government.

This makes the firm the largest publicly traded semiconductor company by valuation, surpassing previous records held by tech giants. Its dominance underscores the central role hardware plays in powering machine learning workloads globally.

However, some investors warn the rapid ascent may bring volatility, with regulatory scrutiny, chip shortages or shifts in AI demand posing potential headwinds.

Still, the $5 trillion threshold — if reached — would cement Nvidia’s place at the apex of the tech landscape and symbolize the AI-driven shift in global markets.